Study Says Bankruptcy Law Hurts Rather Than Helps

Law360, New York (February 23, 2006, 12:00 AM EST) -- Last year's bankruptcy reform—pushed through Congress to crack down on deadbeats—is creating headaches for people with legitimate financial problems, according to a damning report by a group of bankruptcy attorneys.

Banks and credit card companies pushed hard for the tough new bankruptcy law, which was passed last year with the intention of encouraging consumers to pay back debts and address their financial obligations. Credit-counseling sessions and debt-management counseling were two of the requirements the new law stipulated.